Vietnam’s gold prices rose Wednesday morning as global bullion rates traded near a one-week high.
Saigon Jewelry Company gold bar price gained 0.2% to VND151.8 million (US$5,768.35) per tael.
Gold ring price increased by roughly the same rate to VND151.7 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold gained for a fifth consecutive session on Wednesday as optimism over a U.S.-Iran peace agreement eased expectations of U.S. interest rate hikes, while investors awaited further details on the deal and the Federal Reserve’s policy meeting, Reuters reported.
Spot gold was up 0.3% at $4,341.12 per ounce, trading near a one-week high hit on Monday. U.S. gold futures for August delivery rose 0.2% to $4,361.10.
A person holds gold jewelry at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran |
Investors are now awaiting the U.S. Federal Reserve’s policy decision and comments later in the day, with interest rates widely expected to remain unchanged. Gold loses its appeal when rates are high, as it does not yield interest.
“Over the longer term, structural support (for gold) is expected to persist, driven by ongoing Asian demand and continued central bank purchases as a hedge against geopolitical and policy risks,” Westpac analysts wrote in a research note.
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